Stevens Opposes Targeted Approach to Direct Cash Assistance

March 20, 2020

WASHINGTON – Yesterday, Congresswoman Haley Stevens (MI-11) sent a letter to Speaker of the House Nancy Pelosi arguing that a targeted approach to direct cash assistance as part of forthcoming COVID-19 relief packages could cause families that urgently need this assistance to fall through the cracks.

ICYMI: Congresswoman Haley Stevens Backs $1,000 Cash Assistance — Or More — In Response to COVID-19 (WDET, 3/19/2020)

“As the House and Senate work to establish an economic relief package to secure the economic foundations of this country and most importantly the financial security of every American, I would like to support ongoing efforts to ensure direct payments are getting into the hands of Americans who need it as soon as possible,” wrote Congresswoman Stevens. “This week, your office has indicated your support for a targeted approach to cash assistance, refundable tax credits, and unemployment insurance to those below a certain income level. In addition to increasing administrative burden and time to disbursements, such an approach may cause families that urgently need this assistance to fall through the cracks.”

The full text of the letter can be found attached or below.

This week, your office has indicated your support for a targeted approach to cash assistance, refundable tax credits, and unemployment insurance to those below a certain income level. In addition to increasing administrative burden and time to disbursements, such an approach may cause families that urgently need this assistance to fall through the cracks.

On March 18th, I received the following message from a constituent:

“Dear Representative Stevens, As a constituent who supported you in the last election, I'd like to take a moment to express concerns about pending covid-19 relief legislation being debated by the White House and Congress. Much has been said about a $1,000 payment being made to every American adult, with that amount perhaps being based on income. In my case, unfortunately, I went from making $82,000 last year as an IT project manager to being unemployed as of Feb. 17, 2020. My former employer provided me with a severance package, which will be exhausted early next month. And I'm not eligible to file for or collect unemployment until 4/24 due to that severance. My wife only makes $42,000 a year, and we have two school-age children at home, plus a junior in college at the University of Michigan Ann Arbor who just moved home early. My wife's take-home pay is roughly $1,800 a month, and our monthly expenses are about $3,300, which includes a mortgage, car payments & insurance, utilities, a medical loan, etc. I'm trying to minimize some of the debt through deferrals or interest-only payments, but if you do the math you'll see we're about $1,500 short. Being able to collect unemployment while I continue my job search will help, but I'm concerned that because of my previous years' income and severance package, that I won't qualify for the relief as being debated. I sincerely hope that you, and other adult members of Congress, will fight to make sure any such relief (which we as taxpayers all subsidize) takes into account an adult's CURRENT financial situation, and isn't based on a previous job or tax return. Thank you for your time, and god bless to you and your loved ones. Stay safe! – Keith P.”

As you can imagine, with the projected double-digit percentage rise in unemployment and massive retraction in the auto industry, it is going to be difficult for Michiganders like Keith to find a job. He is concerned about your targeted approach, as am I. There are countless other stories like Keith. I hope you will reconsider cumbersome targets and attempts to gather data where it is nearly impossible so we can secure the financial position of people like Keith and so many others like him.”

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